UK real estate experts are predicting that house prices will increase by 6% annually for the next five years. According to the Royal Institution of Chartered the Surveyors some homeowners are afraid to put their property on the market for fear of not finding anything else, as there is a chronic shortage of homes for sale.
The article in this is money.co.uk says these factors will lead to an increase in values of around 35% by 2020. This news comes as figures for loans for house purchases in February show no seasonal dip. Data from the Council of Mortgage Lenders showed that mortgage loans increased by 32.6% annually, reaching 48,400 in February.
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There was a huge increase in the number of loans handed out to first time buyers in this month, as 22,200 home loans worth £3.1 billion were advanced, a 55% increase compared to the same time last year. However, the RIC S also suggests that many middle income families may be unable to purchase property in the future, as it will become increasingly difficult for them to get onto the housing ladder.
This is quite a concern as there are not enough houses for sale in areas …read more